General ACCAkey examinable areas-- kaplan

ACCA F4 Key Examinable Areas for June 2014 Here are some suggestions of key areas which may be tested in June 2014: English Legal System Legislation/sources of law Judicial precedent Criminal and civil law Contract Law Offer and acceptance Postal rule Breach of contract/damages Express and implied terms Condition/warranty/innominate terms Tort Contributory negligence/volenti non fit injuria Economic loss/special relationship Causation Professional misstatement Passing off Employment Law Redundancy/dismissal Employee v Self-employed Agency/partnership How agency relationship arises Termination of partnership Liability of partners Company Law Separate personality/lifting the veil Incorporation procedure Promoter/pre-incorporation contract Statutory books Choice of business structure/private vs public company Issuing of shares Types of shares Class rights Reduction of share capital Appointment/removal of directors Directors duties Types of directors Directors authority Meetings Auditors Corporate governance Fraudulent Behaviour Money laundering Insider dealing Market abuse Fraudulent and wrongful trading NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA F5 Key Examinable Areas for June 2014 Here are some suggestions of key areas which may be tested in June 2014: Specialist Cost and management accounting techniques Target costing Lifecycle Costing Environmental accounting Decision Making techniques Relevant costs Limiting factors Shut down decisions Payoff tables The value of perfect information Budgeting Different types of budgetary systems Types of budgets Quantitative analysis Behavioural aspects of budgeting Standard costing and variance analysis Different types of standard costs used in budgets Mix and yield variances Planning and operational variances Behavioural aspects of standard costing Performance management systems, measurements and control Transfer Pricing ROI and RI The scope of performance measurement NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA F6 Key Examinable Areas for June 2014 Income tax A detailed income tax computation Husband and wife Employment income Some exempt income/benefits Employed vs.self-employed Residence Cash basis accounting Losses – choice of relief/tax saving Mileage allowance National insurance Self assessment Interest/penalty – explanation/calculation Child benefit tax charge Corporation tax Possibly a straddling and/or short period of account Long period of account Definition of a CAP Chargeable gains to calculate, with rollover relief Single company losses and / or group loss relief – with some tax planning Residence Associates Penalties for late filing of return and / or interest on late payment Quarterly instalment payments VAT Separate part of question 1 or 2 or whole question 4/5 VAT return – including some discounts and impaired debts relief Pre-registration input VAT Deregistration Default surcharges and errors TOGC Overseas Flat rate scheme Payment dates Capital gains tax Husband and wife making disposals Takeovers Wasting assets or chattels Exempt assets Rollover relief Inheritance tax Transfer of unused NRB between spouses Death estate calculation Sundry topics for questions 4 and 5 IHT (full question) Comparative scenario or other new style question Self assessment NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA F7 Key Examinable Areas for June 2014 Q1 3 company SOFP or consolidated statement of profit or loss with SOFP workings to possibly include goodwill, retained earnings, NCI. Adjustments to include: PURP, intra-group sales, deferred consideration, share exchange, impairment, revaluation, fair value adjustment Q2 Published accounts to include statement of profit or loss, statement of financial position and statement of changes in equity from trial balance. Possible adjustments to include: revenue recognition, depreciation, revaluation, tax & deferred tax, convertible loan, share issue. Q3 Either a mix of statement of cash flow with some ratio analysis, or an question involving ratios. Q4/Q5 The framework, intangible assets, events after the reporting date, earnings per share. NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA F8 Key Examinable Areas for June 2014 Audit Framework: Confidentiality / conflicts of interest / audit committees Internal Audit: Outsourcing, VFM Planning and Risk: Audit risk Internal Control: Payroll system (including tests of control) Audit Evidence: Purchases; payroll; inventory, review engagements Completion & reporting: Going Concern (ISA 580), Evaluation of misstatements (ISA 450) and Auditor’s reports Specific standards/topics: Elements of internal control (ISA 315) Inherent limitations of internal control Risk assessment procedures (ISA 315) Audit planning (ISA 300) Expectation gap Sampling (ISA 530) Auditing accounting estimates (ISA 540) Please be aware that recent diets for F8 have ranged from those requiring knowledge of the content of a broad range of standards (some quite peripheral to the syllabus) and those requiring grounding in the core auditing concepts/techniques. Therefore, students should be prepared for either possibilities in the June 2014 paper, or a combination of the two. NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA F9 Key Examinable Areas for June 2014 Investment appraisal We can safely assume this topic will be examined at every sitting and carry a substantial number of marks. The most common technique assessed is NPV with inflation and taxation although be prepared for a twist, possibly involving some of the more basic methods of the applications of NPV such as replacement analysis or capital rationing. Lease v buy was examined in the most recent sitting. It is also worth bearing in mind that IRR has not been tested for three years so may pop up in some form. Working Capital Management Another key topic which is likely to examined every time. Exams to date have covered much of this topic, in particular receivables management but it’s been a while since we’ve seen the more numerical aspects surrounding cash management. A key discursive element is to highlight the working capital needs of the company in the scenario and appropriate funding strategies. Inventory management was tested heavily in the most recent sitting, along with a discussion on invoice discounting and factoring. Valuations This has been examined in virtually every F9 exam to date, but interestingly enough, not in the most recent sitting. I believe this is a topic worth being on top of for the next sitting. Cash flow based values have yet to be examined although the PE ratio and dividend valuation methods still appear to be the more examinable areas. There are often high scoring discursive elements in this area of the syllabus for being able to discuss the implications of something on the value of the business or perhaps the relative methods of the valuation methods. Business Finance This topic has been heavily examined recently and in particular the impact of financing on ratios is an area the examiner likes. It is important to be able to discuss the impact that different policies may have on a company by being able to both calculate and interpret financial ratios. It is worth focussing on the relatively new syllabus area of Islamic Finance as it can carry a fairly generous amount marks for relatively little knowledge. Cost of Capital This topic features in virtually every exam to a greater or lesser extent. Candidates should feel confident when calculating the overall cost of capital (WACC) and going on to discuss the impact of the cost of capital on investments. The most recent sitting required calculation of a project specific cost of equity using asset and equity betas. Risk Management Within this section of the syllabus, foreign exchange risk has been examined more often than interest rate risk. However, both are fairly under-examined areas of the syllabus as a whole and these topics did not feature in the most recent sitting at all. I believe this is a topic worth being on top of for the next sitting. The Financial Management Function and The Financial Management Environment We can probably expect one specific topic from these syllabus areas to feature as a tag on discursive element within one question on the exam. This part of the question can provide some easier knowledge-based marks and therefore is worth some focus. The examiner repeatedly comments that these topics are not handled by students as well as he would expect/ like. NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA P1 Key Examinable Areas for June 2014 Here are some suggestions of key areas which may be tested in June 2014 (note - these form the basis for the QB this sitting): Corporate governance critique and improvements Effective internal control systems, reporting within differing jurisdictions Influence of and intervention by institutional investors Function and importance of internal audit Risk definition, analysis of risk and the role of the Board of Directors Risk correlation and strategies for management of such risks Kohlberg’s human moral development theory Ethical standpoints and their application to business decisions Corporate codes of ethics critique and improvements Tucker’s ethical decision making model Social and environmental footprint Sustainability accounting NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA P2 Key Examinable Areas for June 2014 Here are some suggestions of key areas which may be tested in June 2014: Q1 Groups and ethics The examiner has not tested the consolidation of an overseas subsidiary since 2011. There have been many questions on the statement of financial position in recent sittings, so a statement of profit or loss and other comprehensive income seems more likely. Q2 and Q3 Some core areas that have not been examined in discursive form recently include: Deferred tax Related parties IFRS 10 and the definition of control De?recognition and impairment of financial instruments Revenue and provisions continue to be tested regularly and should always be considered key topics. Q4 – Essay?style question Comments made in the most recent examiner’s report suggest that the current focus of question 4 is existing standards. Due to the release of a recent discussion paper, a question on the adequacy of the existing Framework would seem to fit this brief well. European regulators are also focusing on how companies have accounted for and disclosed goodwill impairments (IAS 36), so this would be a timely issue. NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA P3 Key Examinable Areas for June 2014 Project management and benefits management Supply chain management and the value chain Strategy evaluation Managing strategic change and culture Decision making techniques NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA P4 Key Examinable Areas for June 2014 The current examiner has expressed his desire to move the paper away from the highly technical papers set in the past, and to make them more strategic and practical. This has been a feature of the last few exam papers set by the current examiner, and is expected to continue, particularly in the new 50 mark compulsory section A question. At the February 2013 ACCA Lecturers’ Conference, the examiner explained that question spotting is dangerous at this level – it is important that students should study all parts of the syllabus in detail. However, for June 2014, I would advise students to focus on the following core syllabus topics in particular: Corporate reconstruction – comparison of stakeholder position on a liquidation and a reconstruction Black Scholes option pricing model Business valuation, especially using the free cash flow to firm methodology Net Present Value – including foreign currency cash flows Currency hedging – forwards, money market hedges, options, futures NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA P5 Key Examinable Areas for June 2014 Mission, CSFs and KPIs Regulation Benchmarking Risk Budgeting (perhaps beyond budgeting) Divisional performance appraisal including BCG Performance prism (and stakeholders) and perhaps balanced scorecard/ building block model Quality Evaluation of performance and a performance management report (perhaps comparing to VBM as an alternative) EMA Ethics/CSR Corporate failure Value chain NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA P6 Key Examinable Areas for June 2014 Here are some suggestions of key areas which may be tested in June 2014: Corporation tax Group relief / consortium relief Capital gains groups: NGNL Overseas aspects: CFCs Anti-avoidance: pre entry capital losses and trading losses R&D Close companies Capital gains Reliefs: rollover, PPR and letting Inheritance tax BPR Deed of variation New IHT rate for charitable legacies Death estate computation Income tax Income tax comps at marginal rates Benefits: car Share incentive plans Overseas aspects Redundancy Personal financial planning VCT / seed EIS Trusts Description and income tax aspects VAT Groups Land and buildings Scenarios Employed vs. self-employed Sole trader vs. company Salary vs. dividend Lease vs. buy assets: net cost IHT vs CGT for gifts Stamp duty and SDLT Ethics NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision. ACCA P7 Key Examinable Areas for June 2014 Core areas (as per examiner’s approach article) likely to be examined in every paper: Engagement planning and risk assessment (Business risk & risk of material misstatement) Engagement procedures (or evidence) Ethics and professional issues Completion (matters to consider/evidence on file) and engagement reporting Current topics. Subjects of recent articles: Reporting on audited financial statements – significant changes proposed The Control Environment A question of ethics Planning an audit of Financial Statements Completing the audit Significant topics not examined for at least 18 months: Prospective financial information Related party transactions Relying on the work of others Auditing accounting estimates Outsourcing Review of interim FS Tendering Please be aware that the whole syllabus is examinable. Whilst the above topics are likely to be examined in forthcoming sittings this does not mean candidates should avoid other areas of the syllabus in their exam preparation. The examiner will set 5 questions, which will all have multiple elements, so it is likely that topics other than the ones noted above will be examined in the June 2014 exam. The examiner has noted that questions will not be restricted to topic areas (e.g. question 5 will not necessarily be on audit reporting) and instead we should expect to see topics spread across a number of questions. In addition, please note the case study questions in section A will have the requirements embedded in the question (see the article from the examiner ‘Changes in question style’). 4 professional marks will be available within one of the section A case study questions. Finally, please note that the questions in the exam now have a fixed number of marks as follows: Question 1: 35 marks Question 2: 25 marks Questions 3 to 5: 20 marks each NOTE: These should only be used in conjunction with proper studying. We cannot guarantee that these topics will appear in the actual exam as we have not seen the exam papers. Examiners are not predictable so it is vital that all core syllabus areas are revised fully. The tips are based on Kaplan’s experience and understanding of the ACCA exams and will help focus your last minute revision.